Disclaimer: I am not a financial advisor. Anything said in this report is strictly opinion and should not be used as advice. All actions are at your own risk.
Crypto Market Update for Nov 8
By Trader Gabi
Major News
- Blockfi has filed for a spot ETF with the SEC. This adds to a large list of applicants.
- Mastercard Launches crypto-linked payment cards in Asia Pacific. This will allow users to convert their cryptocurrency into fiat to be used anywhere Mastercard is accepted. Another step closer to mass adoption in crypto.
Market Update
- The total crypto market had an increase of 3.19% to 2.86 trillion dollars. Money is beginning to flow into the market at a fierce pace.
- TOTAL3 chart is up 1.30% today. Signifying that most of the new money flow is going into BTC.
- Many layer-one altcoins hit all-time highs last week. ETH, AVAX, LUNA, SOL.
- One more day of Solana Conference. Reducing some positions from smaller alts back into larger cap alts or BTC is not a bad idea.
- Sundayswap on Cardano is nearing completion and release. Sundayswap will be the first DEX released on Cardano. This will be big news for ADA which has been stagnant as of recent. Expect other projects to be releasing soon. Coincidently, ADA looks to be breaking out of its downtrend that began Sept 3.
Bitcoin
- BTC is beginning its ascent into testing previous highs after a 16-day accumulation phase.
- According to glassnode, leverage in BTC is the highest it’s been since Aug 2020. Leverage usually implies participation in the market.
- According to cryptoquant, BTC reserves on exchanges is at an all-time low of 2.3M. Lower supply can lead to stronger moves in price. Think basic supply and demand here.
- BTC Dominance has had a large run up in the past two days from a two week low of 42.38% to 43.71%. Another metric emphasizing that money is beginning to flow into BTC.
Bitcoin Fear and Greed index 75 Greed
Bitcoin google trends 35
Bitcoin dominance 43.70%
NOTABLE EVENTS
- Polkcity land sales begin tomorrow. They are doing an AMA on the most popular crypto-related YouTube channel on Nov 10. POLC is an early stage metaverse project
- Levana Protocol on Terra is currently releasing NFTs which will have staking benefits in the form of a “meteor shower”. Check out their website for more details.
Insight
OFF WE GO!
The much-awaited move from bitcoin is beginning in a strong fashion, raising hopes again of a 100K bitcoin before the end of year. New money flow is pouring in and liquidity is moving from some of the alts into BTC. This is normal action during strong BTC moves. Large BTC moves drive the rest of the market during this time. Here is what you can start expecting if Bitcoin continues to ascend. Metrics support a strong ascent.
Bitcoin will ascend strongly for days at a time while the alts stay relatively quiet. After BTC begins to slow down, alts will begin to explode. This is when 100% plus gains can be a norm on small cap alts. This is referred to as alt season. Alt seasons can differ in time periods and in strength. Money typically flows into crypto in the fashion below.
BTC --> ETH --> Large cap Altcoins --> Small cap alts coins
It’s important at these times to have your portfolio set and reduce buying. Start making plans for good spots to reduce positions and risk on large run-ups and blow-off tops. TAKE SOME PROFITS and be prepared for large dips for chances at re-entry. Excitement is high, stay focused.
Trade Set-ups
MATIC
Matic the most popular layer-2 solution for ETH has been accumulating for a few days after a large recent run-up. Volume is currently retracting
in a bull flag pattern on the 1-day charts. Wait for confirmation with a strong upside breakout and this can be the move to send MATIC to all time highs. Matic is also a good longterm hold.
STX
Stacks is layer-two solution for Bitcoin and with the Taproot upgrade estimated to occur on NOV 14, stacks will have plenty of reason to continue rising. There’s been a lot of updates with it recently.
On the chart, it just broke out of a pennant and there has been lots of new volume. Waiting for a retest of $2.00 is probably not a bad idea before jumping in. Stacks is also a good long-term hold.
Always remember to set stop-losses on trades. Risk management is the most important aspect here.
KADENA
As promised from last week I did a small dive into Kadena**.** And wow. Here’s the gist.
- Kadena is a layer one, smart contract platform protocol
- Strong, experienced team with connections to JPMorgan and SEC
- The tech is state of the art.
- Proof of work, extremely fast and efficient. Could be the fastest blockchain out there.
- Low to no fees to use.
- Great Tokenomics
- Conceptual new ideas like “gas stations”
- Focused on business and enterprise.
- MC of 2.7 Billion with lots of room for growth.
I was really impressed with all the information in the whitepaper. At this first glance, I’d say this project is a strong buy for me but I’m going to do further research and wait for the right opportunity. I’ve attached a hyperlink to the white.
https://docs.kadena.io/whitepapers/overview
NOOB tip of the Day
Psychology
Stop focusing on all the moves in the market that you missed and keep looking forward. This advice applies in all scales. There are tons of opportunities in this market. Focusing on missed opportunities only takes attention away from all the possibilities ahead. And believe me there are going to be tons!
Thanks for all the good input last week and I will continue to be open to new ideas. I’m doing this in hopes of sharing my experience and ideas with everyone reading this. Hope you enjoyed the content.
On that note, have a great day/night!
- Gabi
Follow me on twitter for relative content and updates about the market. @ TraderGabi
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